Will adding my teen affect my auto insurance rates?

Do you remember the day you first got your license? For many, it is an unforgettable moment because it truly was a life-changing event. It meant you didn’t have to beg your parents to drop you off at your friend’s house or try to bum rides off of people to go somewhere. It meant freedom, and what’s better than that in the eyes of a teenager?

Surely, your child will feel the exact same way you did when they get their license. But, you will be having much different feelings this time around. Of course, you will be exceedingly proud of your teenager, but you will likely also feel some anxiety for their safety and stress about what it could cost you. After all, a new driver means new insurance needs. But how exactly will a teen affect your rates and coverage?

The Data

Unfortunately, new drivers are the riskiest for insurance companies to protect, especially new teen drivers. This makes a lot of sense – people just learning a new task will not be as proficient or comfortable with it as those who have done it for years. And we all know that even the most mature teenagers are prone to make a bad decision every now and then; it’s just how life works.

This increased risk is also borne out by auto accident data collected by the Insurance Institute for Highway Safety. Their research shows that drivers aged 16-19 are three times more likely to be in a fatal crash than a driver over the age of 20. Insurance companies thus cover teenagers at much higher rates, since they are much more likely to make claims. It is good to talk with your teen about how serious they should take their new ability, and to only let them get on the road when they have proved their competence and responsibility.

Your Rates

It can often be pretty expensive to add a teenager to your coverage, but it’s almost always going to save you more money than taking out a new policy just for them. Check with your insurance provider to see exactly how much your rates will rise, and ask them if there’s anything you could do to lower them. Here are some benefits several agencies provide which you could take advantage of:

• Multiple car/family plan discounts
• Multiple driver discounts
• Good student discount
• Driver training or special program discount
• Teen driver monitoring program discount
• Automobile safety feature discount

There are other things you can do to save money on your insurance as well. Ask if your agency will allow you to match drivers with cars so that you can get the best rates. Faster and more expensive cars matched to teen drivers can have astronomical rates, so see if you can list your teen as the primary driver of a mini-van or a safe, small SUV. If they will be getting a car as well, try to find something that isn’t too old, yet cheap and safe.

Dissatisfied with your current insurance provider? Come see the experienced insurance agents at Corkhill. If you are about to have a new driver in the family, now is the perfect time to review your auto policy. Call us today for a free quote at 407-898-8891.